According to figures released by the BIS, lending under the scheme fell almost 27%, from £254m in the first quarter of 2009 to £186m a year later.

A further drop took place in the second quarter of 2010, when lending backed by the EFG program fell 20% versus the previous three months, to £149m.

According to Mark Nelson of Compass Business Finance, business lending is worse now than at any point during the past 10 years, with many banks still reluctant to lend.

"We're hearing anecdotal evidence of banks that don't want to be seen to be refusing finance drawing out loan applications to the point that the applicant simply gives up," he said.

"They won't say 'yes' or 'no', they'll simply continue to ask for more information until the person applying decides to try another lender."

Nelson added that printers should be prepared to look further than their usual bank as it was critical that the right application be made to the right bank or finance house.

"This may sometimes be a business’s clearing bank, but more often than not, the best offer will be sourced elsewhere," he said.

Banks have repeatedly blamed the drop off in lending on a lack of demand and have even gone as far as to form a business lending taskforce to improve lending to small businesses.

The taskforce comprises representatives from Barclays, HSBC, Lloyds, Santander, RBS, Standard Chartered, the Treasury, Bank of England, and the BIS, and will be chaired by Stephen Green, chairman of both HSBC and the British Bankers' Association.

It will focus on issues affecting lending to SMEs and trade finance and will outline proposals on these areas to the chancellor later in the year.